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Market capitalization calculator

Multiply the current common share price by shares outstanding to measure the market value of common equity.

Calculator

Market capitalization
$25,000,000.00

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How this calculator works

Multiply the current common share price by shares outstanding to measure the market value of common equity. Use actual outstanding shares rather than authorized shares or free float. Select a different target to infer price or share count from a stated capitalization.

Formula

Market capitalization = price × outstanding shares. For multiple traded common classes, value each class separately and add the results.

Worked example

One million shares at $25 have a $25 million capitalization. Two million shares at $12.50 have the same capitalization.

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Frequently asked questions

Is market capitalization the purchase price for a company?

It values common equity only. Enterprise value also considers debt, cash and other capital claims.

Should treasury shares be included?

No. Treasury shares are held by the company and are excluded from outstanding shares.

Does a stock split change capitalization?

A proportional change in shares and price leaves the theoretical capitalization unchanged.

Sources

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